Juicy Policy for Speculator

JasonLoo 20160125 Affordable Housing Price BIPENANG — Approval from Penang state authority is no longer required before selling low cost & low medium cost houses above 10 years. What a juicy policy for speculator.

Penang Gerakan Youth urged the state government to revoke its “improper and inconsiderate” new housing policy as it is against the interests of the low and low medium income groups.

Its legal and public complaints bureau chief Jason loo said it is wrong for the state to allow owners of the state’s low and low-medium cost houses of more than 10 years to sell off their units in the open market without having to seek approval from the state authority.

Loo said this exemption would definitely not help the low and low medium income groups own houses,

“On the contrary, it will encourage more speculation on sales and purchases of this category of houses by the investors and consortium to boost prices of houses in Penang. This kind of policy is also tantamount to abolishing the policy of low and low medium cost houses,” he said in a statement.

Loo lambasted State Housing Committee chairman Jagdeep Singh Deo for this “ill-advised and slipshod decision” which would only take care more of the commercial interests than the interests of the people in Penang.

He agreed with the view expressed by practicing lawyer Lim Choo Hooi who said that when the low and low medium cost houses were allowed to be sold in the open market, it may attract richer house buyers, as well as becoming the investment items by the big consortium.

Consequently, those aspiring house purchasers who are not financially sound will never have a chance to purchase any houses in Penang.

“If these low & low medium cost houses could easily be traded in the open market before the approvals are obtained from the relevant authority, then those aspiring purchasers who need to secure the loan from the bank will lose out to the rich and the real property investors while waiting for the loan approvals,” Loo added.

Loo pointed out that he agreed that this new policy will only aid the real property investors and speculators who will hike up prices of the low and low medium cost houses and eventually there will be no more low and low medium cost houses available in Penang.

This policy will also ultimately force those economically underprivileged to rent houses from the real property investors or consortium, and house ownership will be a mere dream for many people.

He pointed out that the prices of the low and low medium cost houses have been hiked up many folds within a short period of time, and some of them have been speculated to the level beyond the prices appraised and accepted by the banks.

Once those low and low medium cost houses of more than 10 years are allowed to be traded in the open market, prices of this category of houses may be speculated to very high level beyond the reach of the people in Penang.

He said what happened in Hong Kong could also happen in Penang where the housing agents in Hong Kong other than their normal business would also purchase low cost houses for rental returns and long term investment.

Loo urged Jagdeep Singh to clarify on the contradictory statements made by him and Lim Choo Hooi on the needs of the consent and verification from the state authority to allow low and low medium cost houses to be traded in the open market.